Vacation planning

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	Have a Nice Trip Personal Finance Advisor by Deloitte & Touche OnLine May 26, 1997

Covering a few financial angles before you leave can make your vacation more worry-free.

Vacation.

The word alone acts as a salve of saltwater and sunshine on frazzled nerves. But making a vacation a truly carefree, battery-recharging experience requires planning.

Heavenly as a vacation may be, it's still an earthly experience fraught with potential problems. Ski trips can be bone breakers, Florida sunshine can burn and even a quiet golf weekend can be a knee wrencher, as President Clinton recently discovered. To make a vacation as carefree as possible, experts recommend travelers take a few minutes to review their insurance policies and safeguard their homes before heading out of town.

"No one likes to think they'll get sick when they go on vacation or have an accident, but it sometimes happens," said Nancy Donovan, president and owner of Ames Travel Service in Cincinnati.

Check your health insurance. Most HMOs and PPOs have well defined procedures for seeing out-of-town doctors. Knowing those procedures in advance can save travelers worry and expense on the road, said Donovan. Also, clients who have a known medical condition should write it down and translate the information into a handful of languages if they plan to travel abroad.

"I took a tour group to Germany last year and one lady had a medical emergency and was taken to the hospital. She had arrhythmia and had had an episode with it once 25 years earlier. Because she travels a lot, she wrote her condition on a slip of paper she kept in her wallet and had it translated into French, Spanish and German. At the hospital she handed the doctor the paper and he knew exactly what to do. We had her back in the hotel two hours later."

Review your homeowners policy and estate planning documents. Health insurance isn't the only type of coverage travelers should review before setting out, said Eric Ridenour a senior consultant with Deloitte & Touche's Financial Counseling Services in Charlotte, N.C.

"Revisit your homeowners policy and check the provisions for replacement of contents in case of a break in," he said. "And make sure all your important estate planning documents -- your will, your durable powers of attorney for health and finances and your life insurance policy -- are in a safe place, like a safe deposit box. Also, make sure your trustee has copies or knows where they are."

Your home on vacation

For travelers, protecting their unattended homes is nearly as important as safeguarding themselves. The National Crime Prevention Council recommends:

Make sure all doors and windows are locked.
Make sure appliances are off.
Leave a light on or, better yet, have lights, radios and televisions, hooked up to an automatic timer.
Cancel mail, newspaper and other deliveries before you leave.
Call your local police department and tell them when you will be out of town. Most departments will be happy to drive by your house in your absence.
Ask neighbors to keep an eye on your home. You may want to give a friend or relative a key to your home, but only if you know the person well.

Check your automobile insurance. Travelers who plan to rent a car on vacation should determine whether they ought to buy the rental agency's liability waiver. Most drivers' insurance policies -- and even some credit card companies -- will cover vacationers if they have an accident while driving a rental car, said Bob Brodbeck president of Brodbeck Insurance, Inc. in Cincinnati. Renters who plan to let other drivers use the car should also determine whether they are covered if another driver has an accident in their rental, he said.

Consider cancellation insurance. Travelers taking trips that require prepayment, such as cruises, are wise to consider cancellation insurance as well, said Donovan. While the policies are expensive -- ranging from $200 to $600 depending on the number of people covered and the length of the trip -- they can save people from losing their entire vacation fund in the event that they are unable to travel.

"Any number of times I've appealed to cruise lines because someone was unable to take a trip because of an illness or a death in the family and they never make an exception," she said. "It can be heartbreaking to see someone lose $5,000 or $10,000 because it's a week before the trip and they find out they can't go."

Manage international currencies. Donovan recommends international travelers exchange $100 (U.S.) worth of currency before they leave the United States for each country they plan to visit.

"A lot of people don't want to exchange money before they leave the United States because they think the rates are higher," she said. "But it's worth paying a small premium to know that when you get to where you're going and your jet lagged and exhausted you have enough money to hail a cab and get to your hotel."

To avoid over tipping -- a common mistake among Americans visiting abroad -- Donovan also recommends travelers carry 25 $1 bills (U.S.) with them. "Almost everyone is happy to have U.S. dollars and you'll know you're tipping the right amount," she said.

Use common sense. Whether they are traveling hundreds or thousands of miles, travelers should always be conscious of the fact that they "aren't in Kansas anymore." Simple precautions, such as carrying travelers checks rather than large amounts of cash and leaving expensive jewelry and other valuables at home in a safe deposit box, can help prevent vacation catastrophes and ensure a great trip.